Bitcoin trades in yuan drop sharply to just 1% of the global volume

9 July 2018

This week Chinese media resource, Asia Times, reported that the People’s Bank of China unveiled some figures showing the decrease in the trades of Bitcoin involving Chinese yuan, and now transactions performed in yuan account just for 1% of the total volume.

The report published by the Chinese central bank last week reveals that the share of yuan in the global Bitcoin trades has remarkably declined on the heels of the government’s ban on the cryptocurrency business across the nation.

In 2017 the number of Chinese cryptocurrency exchanges stood at 90% of the overall cryptocurrency industry, and now it is less than 1%, a dramatic drop in the wake of the national policy on restricting digital currency activity.

Guo Dazhi, research director at the Zhongguancun Internet Finance Institute, notes: “Th[e new figures] indicate that the policy has been very successful. It is within expectations that the yuan’s share in global Bitcoin transactions would drop after China announced the ban.”

Separate media reports unveil that the Chinese government has no plans to lift the ban on Bitcoin trading in a short term, as the market is viewed as volatile implicating a range of risks for local investors.

XinhuaNet also cited the statement of the PBoC, where the central bank underlines the country’s steps undertaken to ensure ‘zero-risk’ exit for 88 cryptocurrency exchanges and 85 ICO platforms since the end of the last year.